U.S. venture capital investment was essentially flat last year but was trending upward, driven by robust interest in second rounds.

Investment in venture-backed companies in 2013 totaled $33.08 billion, a mere 1% increase from 2012, according to DJX VentureSource. Fourth quarter investment, however, rose 7.3% from a year earlier to $8.89 billion, indicating growing investor confidence.

Investors backed fewer companies in 2013 as seed and first rounds declined. There were 3,480 financings, a 4.6% decline from 2012. But as with investment, deals were up for the fourth quarter with 901 financings, a 3.3% increase from a year ago.

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